Short Summary

During the last year or so politicians and economists have expounded theories to combat the inflation or recession that gripped their countries.

Description

1.
SV The Sao Paulo Federal Revenue Offices.

2.
C.U. Sign on door.

3.
S.V.Int. Auctioneer at work.

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S.T.V. Ditto.

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C.U. The auctioneer.

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S.V. The crowd around him.

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S.V. A Mercedes up for auction.

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C.U. Mercedes trade mark.

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S.V.Pan Along the Mercedes.

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S.V. The man who bought the "Mercedes" smiling.

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S.V. The auctioneers clerk.

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S.V. Signing for the Mercedes.

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S.T.V. The auction continuing.

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S.V. A Volkswagen up for auction.

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S.V. Interior of car.

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C.U. Volkswagen trade mark.

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S.C.U. The auctioneer selling the car.

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S.V. His clerk at work.

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C.U.Pan Pan up from a wad of money in a mans hand to his smiling face after buying the Volkswagen.

Initials

Script is copyright Reuters Limited. All rights reserved

Background: During the last year or so politicians and economists have expounded theories to combat the inflation or recession that gripped their countries. Brazil suffers from the former economic disease, prices of many goods are much higher in comparison to those in other countries. In this respect automobiles are priced ridiculously high. Whereas in the U.S.A., Paraguay or Uruguay a specific model sell for 2000 dollar, in Brazil buyers pay up to five times this amount.

Part of the extra cost is due to customs duties that add 150% to the import price, the rest is a result of unfavourable currency exchange caused by internal inflation. As would be expected ways of evading some of these cost have been suggested, and so far only one has been moderately successful,---smuggling.

These illegal importations are not always successful, occasionally customs officials arrive unexpectedly and impound the contraband. When this happens an auction is arranged to pay the levies and the offenders fines. Such a sale occurred at Sao paulo on the 26th March.

Up for sale were two Mercedes Benz, a super de-luxe and a four door sedan, and a Volkswagen sports car with a Porsche engine. One of the Mercedes was sold to a Brazillian beer brewer for approximately GBP4,500 and the Volkswagen for GBP3,500 to a car dealer--he will probably resell it for much more.